MEDI A/ ANALYST PRESENTATI ON FY2006-07 RESULTS 11 MAY 2007 SI A - - PowerPoint PPT Presentation

MEDI A/ ANALYST PRESENTATI ON FY2006-07 RESULTS 11 MAY 2007

SI A GROUP SI A GROUP FY2006 FY2006-

• 07 RESULTS

07 RESULTS

GROUP REVENUE GROUP REVENUE – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

2003 2004 2005 2006 2007

10,515 9,762 12,013 13,341 14,494

8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000

($ million)

Record Revenue

8.6%

5-Year CAGR

+ 8.4%

GROUP EXPENDI TURE GROUP EXPENDI TURE – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

2003 2004 2005 2006 2007

Group Expenditure

8.7%

5-Year CAGR

+ 7.7%

9,798 9,093 10,696 12,128 13,180

8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000

($ million)

GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

717 669 1,317 1,213 1,314

200 400 600 800 1,000 1,200 1,400 1,600 2003 2004 2005 2006 2007

($ million)

Operating Profit

8.3%

5-Year CAGR

+ 16.4%

GROUP OPERATI NG PROFI T GROUP OPERATI NG PROFI T – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

($ million)

1,213

500 1,000 1,500 2,000 2,500 3,000 2006 Operating Revenue Fuel Expenditure Ex-Fuel Expenditure 2007

1,314

+ 1,153

Higher loads & improved yields

• 677

Higher fuel spend

• 375

Higher costs ex-fuel

101

GROUP FUEL EXPENDI TURE GROUP FUEL EXPENDI TURE – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

1,865 1,811 2,693 4,240 4,917

1,000 2,000 3,000 4,000 5,000 6,000 2003 2004 2005 2006 2007

($ million)

5-Year CAGR

+ 27.4%

Fuel Expenditure

16.0%

GROUP EX GROUP EX-

• FUEL EXPENDI TURE

FUEL EXPENDI TURE – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

7,933 7,282 8,003 7,888 8,263

2,000 4,000 6,000 8,000 10,000 2003 2004 2005 2006 2007

($ million)

Ex-Fuel Expenditure

4.8%

5-Year CAGR

+ + 1.0%

CONTRI BUTI ON TO GROUP OPERATI NG CONTRI BUTI ON TO GROUP OPERATI NG PROFI T PROFI T – – FY2006/ 07 FY2006/ 07

Percentage (% )

• 2.5%

14.3% 78.1% 53.6% 15.2% 11.7% 11.1% 7.8% 4.9% 5.8%

• 10

10 20 30 40 50 60 70 80 90 100 110 2006 2007

SI A 24.5% pts SI A Cargo 16.8% pts SATS Group 3.5% pts SI AEC 3.3% pts SATS SI A SI A Cargo SI AEC Others

GROUP NET PROFI T GROUP NET PROFI T – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

($ million)

1,241

500 1,000 1,500 2,000 2,500 2006 Operating Profit Non-Op Surpluses Exceptional I tems Tax Writeback 2007

2,129 + 101

Higher

• perating

profit

+ 247

Tax writeback

+ 119

Surplus on disposal

• f Aircraft

& Others

+ 421

Sale of SI A Building & SALE

888

THE PARENT AI RLI NE THE PARENT AI RLI NE FY2006 FY2006-

• 07 RESULTS

07 RESULTS

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY HI GHLI GHTS HI GHLI GHTS – – FY2006/ 07 FY2006/ 07

Capacity growth (+ 2.8% ) Passengers carriage (+ 7.7% ) Passenger load factor 79.2% (+ 3.6% points) Passenger yield 10.9¢/ pkm (+ 2.8% ) Record revenue $11,344 million (+ 10.1% ) Unit cost 7.9¢/ ask (+ 5.3% ) Record operating profit $1,027 million (+ 57.8% )

Highlights of Company’s Performance

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY RESULTS RESULTS – – FY2006/ 07 FY2006/ 07

57.8 57.8 + + 651.0 651.0 1,027.0 1,027.0 Operating Profit Operating Profit 6.9 6.9 + + (9,651.8) (9,651.8) (10,316.9) (10,316.9) Total Expenditure Total Expenditure 10.1 10.1 + + 10,302.8 10,302.8 11,343.9 11,343.9 Total Revenue Total Revenue % Change % Change 2005 2005-

• 06

06 2006 2006-

• 07

07

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07

+ + % Change % Change 2.8 2.8 + + 1.7 1.7 pts pts 70.8 70.8 72.5 72.5 Passenger Passenger Breakeven Load Breakeven Load Factor (% ) Factor (% ) + + 5.3 5.3 7.5 7.5 7.9 7.9 Unit Cost Unit Cost ( ( ¢ ¢/ ask) / ask) 10.6 10.6 10.9 10.9 Passenger Yield Passenger Yield ( ( ¢ ¢/ / pkm pkm) ) 2005 2005-

• 06

06 2006 2006-

• 07

07

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07

2006 2007

Capacity (ASK)

2.8%

Passenger Carriage (RPK)

7.7%

RPK ASK 79.2 75.6

• Pax. Load

Factor (% )

3.6% pts

PLF

(Billion KM)

80 90 100 110 120

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07

+ + % Change % Change 3.6 3.6 pts pts + + 1.9 1.9 pts pts 4.8 pts 4.8 pts 6.7 pts 6.7 pts Passenger Load Passenger Load Factor Spread (% ) Factor Spread (% ) + + 1.7 1.7 pts pts 70.8 70.8 72.5 72.5 Passenger Passenger Breakeven Load Breakeven Load Factor (% ) Factor (% ) 75.6 75.6 79.2 79.2 Passenger Load Passenger Load Factor (% ) Factor (% ) 2005 2005-

• 06

06 2006 2006-

• 07

07

60 62 64 66 68 70 72 74 76 78 80 82 2003 2004 2005 2006 2007 Passenger Load Factor Breakeven Load Factor 0.9 0.5 4.8 4.8 6.7

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY OPERATI NG PERFORMANCE OPERATI NG PERFORMANCE – – FY2006/ 07 FY2006/ 07

(% )

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY COST COMPOSI TI ON COST COMPOSI TI ON – – FY2006/ 07 FY2006/ 07

Fuel 37.6% (+ 2.7% pts) Airport Handling 7.3% (-0.3% pt) Others 22.6% (-0.8% pt) Aircraft Depreciation & Rental 10.2% (-0.9% pt) Staff 16.3% Sales Costs 6.0% (-0.7% pt)

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY COST ANALYSI S COST ANALYSI S – – FY2006/ 07 FY2006/ 07

1000 2000 3000 4000 5000 Others Sales Airport Handling Depr, Rentals & Carrying Costs Staff Fuel

2006-07 2005-06

($ million)

$3,881 M (+ 15.2% ) $1,686 M (+ 7.3% ) $1,050 M (-2.2% ) $753 M (+ 2.7% ) $620 M (-4.1% ) $2,327 M (+ 3.0% )

THE PARENT AI RLI NE COMPANY THE PARENT AI RLI NE COMPANY FUEL COST FUEL COST – – FY2006/ 07 FY2006/ 07

84.40 76.26 54.58 37.91 34.51

10 20 30 40 50 60 70 80 90 100 2003 2004 2005 2006 2007

(USD/ BBL)

1,000 2,000 3,000 4,000 5,000 6,000 7,000

($ million)

1,523 1,416 2,148 3,368

3,881 (+ 15.2% )

SI A SUBSI DI ARI ES SI A SUBSI DI ARI ES FY2006 FY2006-

• 07 RESULTS

07 RESULTS

SUBSI DI ARI ES NET PROFI T SUBSI DI ARI ES NET PROFI T – – FY2006/ 07 ($ million) FY2006/ 07 ($ million)

% Change % Change 2005 2005-

• 06

06 2006 2006-

• 07

07 5.5 5.5

• 188.6

188.6 178.2 178.2 SATS Group SATS Group 77.4 77.4

• 135.3

135.3 30.6 30.6 SI A Cargo SI A Cargo 5.0 5.0 + + 230.6 230.6 242.1 242.1 SI AEC Group SI AEC Group 3.9 3.9

• 20.6

20.6 19.8 19.8 SilkAir SilkAir

LOOKI NG LOOKI NG AHEAD AHEAD

LOOKI NG AHEAD LOOKI NG AHEAD

Fuel Hedging Position Capital Expenditure Airbus A380 Fleet Development

GROUP FUEL HEDGI NG GROUP FUEL HEDGI NG POSI TI ON POSI TI ON – – FY2007/ 08 FY2007/ 08

Budgeted Uplift Volume (M BBL) 37 Hedging Target (% ) 45 + / - 15 Percentage Hedged (% ) at May 07 42 Avg Hedged Price (USD/ BBL - Jet Fuel) 84

GROUP CAPI TAL EXPENDI TURE GROUP CAPI TAL EXPENDI TURE FOR NEXT 5 YEARS ($ million) FOR NEXT 5 YEARS ($ million)

2,800 2,800 500 500 2,300 2,300 FY08/ 09 FY08/ 09 4,000 4,000 500 500 3,500 3,500 FY09/ 10 FY09/ 10 5,100 5,100 300 300 4,800 4,800 FY10/ 11 FY10/ 11 4,800 4,800 2,400 2,400 Total Total 300 300 600 600 Other Assets Other Assets 4,500 4,500 1,800 1,800 Aircraft Aircraft FY11/ 12 FY11/ 12 FY07/ 08 FY07/ 08

AI RBUS A380 AI RBUS A380-

• 800

800 – – FY2007/ 08 FY2007/ 08

1st unit delivery October 2007, into commercial service in November 2007 to Sydney 2nd and 3rd units delivery January and February 2008 for London route

PASSENGER FLEET DEVELOPMENT PASSENGER FLEET DEVELOPMENT – – FY2007/ 08 FY2007/ 08

Operating Fleet at 1 April 2007 94 Aircraft Deliveries

Airbus A380-800

3

Boeing B777-300ER

5 Aircraft Sold Off

Boeing B747-400

5 Operating Fleet at 31 March 2008 97

DI VI DENDS DI VI DENDS

DI VI DENDS DI VI DENDS – – FY2006/ 07 FY2006/ 07

101.7 101.7 172.6 172.6 Earnings Per Share ( Earnings Per Share ( ¢ ¢) ) 10.0 10.0 15.0 15.0 I nterim Dividend Per I nterim Dividend Per Share Paid ( Share Paid ( ¢ ¢) ) 2005 2005-

• 06

06 2006 2006-

• 07

07 Proposed Final Proposed Final Dividend Per Share ( Dividend Per Share ( ¢ ¢) ) 35.0 35.0 35.0 35.0 Total Ordinary Total Ordinary Dividend Per Share ( Dividend Per Share ( ¢ ¢) ) 45.0 45.0 50.0 50.0

SPECI AL DI VI DEND SPECI AL DI VI DEND – – FY2006/ 07 FY2006/ 07

Sale of SI A Building and of 35.5% stake in Singapore Aircraft Leasing Enterprise Total proceeds $852 Million

Monetization of Non-Core Assets Proposed Special Dividend

50¢ per share, approximately $625 Million 73% of proceeds

TOTAL DI VI DENDS TOTAL DI VI DENDS – – FY2006/ 07 FY2006/ 07

45.0 45.0 50.0 50.0 Total Ordinary Total Ordinary Dividend Per Share ( Dividend Per Share ( ¢ ¢) ) 2005 2005-

• 06

06 2006 2006-

• 07

07 Proposed Special Proposed Special Dividend Per Share ( Dividend Per Share ( ¢ ¢) ) Nil Nil 50.0 50.0 Total Dividends Total Dividends Per Share ( Per Share ( ¢ ¢) ) 45.0 45.0 100.0 100.0

PROPOSED PROPOSED CAPI TAL REDUCTI ON CAPI TAL REDUCTI ON

PROPOSED CAPI TAL REDUCTI ON PROPOSED CAPI TAL REDUCTI ON

Make capital structure more efficient I mprove ROE Ensure adequate funding for operations and investments

Objectives

PROPOSED CAPI TAL REDUCTI ON PROPOSED CAPI TAL REDUCTI ON

• 1 share cancelled for every 15 shares held

1 share cancelled for every 15 shares held

Distribution to shareholders by cancellation Distribution to shareholders by cancellation

• f shares
• f shares1

1

1. 1. Subject to court approval Subject to court approval 2. 2. Price based on average SGX closing price between 2 May and 8 May Price based on average SGX closing price between 2 May and 8 May 2007 2007

• Cash distribution $18.46 per share cancelled

Cash distribution $18.46 per share cancelled2

2 3. 3. Estimated based on 1,249.3 million shares in issue at 8 May 2007 Estimated based on 1,249.3 million shares in issue at 8 May 2007

• Approximately $1,537 million

Approximately $1,537 million3

3

PROPOSED CAPI TAL REDUCTI ON PROPOSED CAPI TAL REDUCTI ON

All shareholders receive cash Proportion of ownership after completion remain unchanged I mprove EPS

Features & Benefits

PROPOSED CAPI TAL REDUCTI ON PROPOSED CAPI TAL REDUCTI ON

Alternatives to be made available for odd lots, rounded up to nearest normal trading lot Details forthcoming

Features & Benefits

Singapore Airlines Limited Company Registration No.: 197200078R Further information and media releases can be found at the Singapore Airlines internet website www.singaporeair.com.sg